So you applied for a mortgage... and your loan application was denied. How devastating! Yes, but keep your chin up and don’t stress — there’s hope yet for aspiring homeowners just like you.
Here’s what you can do to qualify for the loan the next time around:
1. Find out why you were denied.
Your loan officer should give you a definite answer as to why your application was turned down. Having this info will help you know what you need to do the next time.
2. Check your credit report.
Pull your free credit report and make sure there aren’t any errors.
3. Pay down your debt.
Most lenders want to see a debt-to-income of less than 43%. Do what you can to come in under that number by paying off credit cards, student loans, and car payments.
4. Shop around.
If you were denied a conventional loan, talk with your realtor or mortgage advisor about other loan products that may work with your financial profile. Don’t be afraid to speak with multiple lenders.
If you’re looking to buy a home and have had trouble getting a loan, register for a consult on my website. I would love to listen, encourage, and get you back on the path to homeownership.
Vanessa Speight is Your Homebuying Coach, a multi-million dollar real estate sales producer. As a community advocate and formerly single mom, she holds an extremely special place in her heart for first-time homebuyers, especially those in underserved communities. She is wife to an active duty military service member and mother to four beautiful active boys.